Powered by MOMENTUM MEDIA
subscribe to our newsletter

Bank outlines ‘vigorous strategy’ to buy Westpac PNG

Kina Securities Limited has outlined how its proposed acquisition of Westpac PNG will benefit consumers, following opposition from the competition watchdog.

Last month, the PNG Independent Consumer and Competition Commission (ICCC) issued a draft determination stating it had competition concerns with Kina Securities Limited’s (Kina) proposed acquisition of 89.91 per cent stake in Westpac Bank PNG Ltd.

The deal was estimated to be around $420 million and is subject to regulatory approvals in both Fiji and Papua New Guinea (PNG).

In its statement last month, the PNG competition watchdog said it was “not currently satisfied that the acquisition will not, or will not likely, have the effect of substantially lessening competition in the relevant markets identified”.

The ICCC also determined that the acquisition would not result in public benefits that would outweigh detriments to the public.

Advertisement
Advertisement

Following the publication of these concerns, Kina has now put forward its “vigorous strategy” for the acquisition to the ICCC.

Represented by chairman, Isikeli Taureka, and managing director and chief executive Greg Pawson, the Kina representatives said that the deal would provide more competition in the banking sector, more innovation and more customer choice for Papua New Guinea.

Mr Greg Pawson committed to a PGK25 million ($9 million) investment in technology and digital innovation, expanding the current Westpac PNG branch and instore network by 50 per cent in the first three years after the acquisition, and creating a pan-Pacific bank domiciled in PNG.

“We will expand the distribution footprint of banking services across PNG to reach more Papua New Guineans,” Mr Pawson said.

“We will retain the existing Westpac corporate structure, banking licence, operations and technology – and simply rebrand as East West Commercial Bank. This exciting new bank brand will also be used for Westpac Fiji and positioned as PNG’s international bank brand.”

PROMOTED CONTENT


He added that this multi-brand strategy would see East West Commercial Bank compete directly with Kina Bank, and therefore provide customers with a full range of competitive, innovative financial services.

The group also highlighted a medium-term prospect of securing banking licences in Australia and Singapore to improve PNG’s access and reach across the region.

“Expanding the distribution footprint will ensure more competition in locations across PNG which are currently only served by one bank or not at all. It’s a huge commitment to reinvigorate financial inclusion, he said.

Kina chairman Mr Taureka added: “Our mission is to constantly improve the prosperity of the people, communities and markets that we serve.

“We strongly believe that this transaction should be approved by the ICCC.”

Kina Bank bought ANZ’s retail, commercial and SME banking business in 2019.

[Related: Westpac sale of Pacific businesses stymied by ICCC]

Bank outlines ‘vigorous strategy’ to buy Westpac PNG
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Contact Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The big four boss has voiced some scepticism around newer players in lending and how they present their products. ...

The mutual lender’s book has grown to over $8 billion, following strong growth in the final quarter of the financial year 2021, partly att...

The Reserve Bank should play a stronger role in maintaining the stability of the housing system, according to a new report. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.